The rational foundations of economic behaviour

the long version

This volume comprises fourteen papers presented to a conference of the IEA held at the International Centre for Economic Research in Turin. Four areas are identified in which theoretical and empirical developments are discussed for the fuller understanding of personal (as opposed to collective) behaviour with economic objectives: rational choice and associated problems of logic; rationality as explained by game theory; experiments to elucidate rational behaviour; and alternative treatments of rationality in decision-making theory. Most of the leading contributors to the contemporary formulation of the constituents of economic rationality were brought together - from Britain, France, Israel, Italy, Sweden and the United States - and considerable controversy was aroused, expressed in comments and rejoinders. The preface by Nobel Laureate Kenneth J. Arrow traces the evolution of concepts of economic rationality from the start of this century.